Case Study - Intel This is a strategic management case
KEY DRIVERS
What drove Intel? Craig Barrett, appointed executive vice president in January 1990, believes that "the world changes and the centre of gravity shifts. We need to shift with it." . Intel recognises the need for continually analysing and reviewing its strategies in order to meet the changes and challenges that come from the external environments so as to meet the stakeholders' expectations. Intel strives for business renewal and revitalisation as a way of dealing effectively with the impact of the information society on today's dynamic industry. Therefore, Intel is an innovation-driven organization that strongly believes that competitive advantage can be achieved by choosing the right option at the right time so as to create value to Intel's key stakeholders: its customers. To achieve this Intel uses the following key drivers (which are discussed in detail in Question 2):
*Market leadership and Innovation
*Research and Development
*Strategic Alliances
*Good Human Resource Management
*Benchmarking
*Branding
KEY INNOVATIONS
Innovation has always been a key feature in Intel's history. In this section we summarise the major innovations brought out by Intel:
1969SRAM (bipolar static random access memory);
1971EPROM 1702 (erasable programmable memory device);
Intel launches its first microprocessor (the 4-bit 4004);
1974Intel launches its first general-purpose microprocessor (the 8-bit 8080);
1981The revolutionary 432 32-bit microprocessor is launched;
1985The 32-bit 386 microprocessor is introduced (the 486 will replace the 386 in 1989);
1993The first generation of Pentium processors is introduced;
As one can see, Intel has continually introduced breakthrough market creating products, highlighting the importance of innovation as a key driver to this company.
KEY STRATEGIC INITIATIVES
1984Copyright protection (i.e. lawsuit against NEC) and dramatic changes in the company's licensing strategy (only IBM was granted a license);
1985Intel exits
What drove Intel? Craig Barrett, appointed executive vice president in January 1990, believes that "the world changes and the centre of gravity shifts. We need to shift with it." . Intel recognises the need for continually analysing and reviewing its strategies in order to meet the changes and challenges that come from the external environments so as to meet the stakeholders' expectations. Intel strives for business renewal and revitalisation as a way of dealing effectively with the impact of the information society on today's dynamic industry. Therefore, Intel is an innovation-driven organization that strongly believes that competitive advantage can be achieved by choosing the right option at the right time so as to create value to Intel's key stakeholders: its customers. To achieve this Intel uses the following key drivers (which are discussed in detail in Question 2):
*Market leadership and Innovation
*Research and Development
*Strategic Alliances
*Good Human Resource Management
*Benchmarking
*Branding
KEY INNOVATIONS
Innovation has always been a key feature in Intel's history. In this section we summarise the major innovations brought out by Intel:
1969SRAM (bipolar static random access memory);
1971EPROM 1702 (erasable programmable memory device);
Intel launches its first microprocessor (the 4-bit 4004);
1974Intel launches its first general-purpose microprocessor (the 8-bit 8080);
1981The revolutionary 432 32-bit microprocessor is launched;
1985The 32-bit 386 microprocessor is introduced (the 486 will replace the 386 in 1989);
1993The first generation of Pentium processors is introduced;
As one can see, Intel has continually introduced breakthrough market creating products, highlighting the importance of innovation as a key driver to this company.
KEY STRATEGIC INITIATIVES
1984Copyright protection (i.e. lawsuit against NEC) and dramatic changes in the company's licensing strategy (only IBM was granted a license);
1985Intel exits
References: "Intel Unveils New Technologies For Future Cell Phone, PDA Processors Based On Intel® XScale® Technology" (September 17, 2003): http://www.intel.com/pressroom/archive/releases/20030917net.htm?iid=Homepage+Highlight_030917b& -Hitt, M.A., Keats, B.W., DeMarie, S.M. (1998): "Navigating in the new competitive landscape: Building strategic flexibility and competitive advantage in the 21st century"; Academy of Management Executive, Vol. 12, No. 4; pp. 22-42; -http://www.intel.com/intel/intelis/museum/research/arc_collect/history_docs/brochures.htm ("25 years") -Ambrosini, V. (1998). Exploring Techniques of Analysis and Evaluation in Strategic Management, Prentice Hall Europe. -DeBlock, D., Fielstein, E., et al. (September 25, 2002): "MOT 310 - Lecture 5 Case Deep Six"; http://www.google.ie/search?q=cache:XxN8U3ZjZ8sJ:mba.vanderbilt.edu/david.dilts/mt310/2002-09-25%2520Case.ppt+INTEL+corporation:+swot+analysis&hl=en&ie=UTF-8 -Carpenter, D. (September 15, 2003): Motorola, Microsoft Team Up on Cell Phone; http://www.kansascity.com/mld/kansascity/business/6773921.htm